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<FONT FACE="Arial" class="NormalMinus1"> <pre> By Josh Mitchell and Eric Morath </pre> <p> WASHINGTON-New-home sales fell in November, a sign of unsteadiness in the housing market despite ultra-low interest rates and sturdy economic growth. </p> <p> Sales of newly built, single-family homes declined 1.6% in November from a month earlier to a seasonally adjusted annual rate of 438,000, the Commerce Department said Tuesday. Economists surveyed by The Wall Street Journal had expected sales to reach a pace of 460,000. </p> <p> New-home purchases fell 2.2% in October to a rate of 445,000, lower than the initial estimate of 458,000. </p> <p> New-home sales represent about a tenth of the overall housing market, and monthly figures are often revised. The broader trend suggests a choppy market struggling to lift off. Compared to a year earlier, new-home sales were also 1.6% lower in November. </p> <p> New-home sales are running at less than half their annual average of the 2000s, as the housing market lags the broader economic recovery. The economy grew at a robust pace in the spring and summer, and the U.S. is on track to post the strongest year of job growth since 1999. Consumer confidence is rising. </p> <p> Meanwhile, mortgage rates have retreated after rising last year. The average 30-year fixed-rate mortgage has slipped below 4%, according to Freddie Mac. </p> <p> Several factors could be holding back housing. Lenders continue to impose tight credit standards, giving loans to only those with high credit scores. Many families lack money for down payments. </p> <p> Also, inventory has been tight, limiting consumer options, and home values have risen steadily, denting affordability. </p> <p> Wednesday's report showed housing stock built up as sales fell. At the November selling pace, it would take 5.8 months to exhaust the supply of newly built homes on the market. </p> <p> The price of the typical home has climbed. The median price of a newly built home stood at 280,900 in November, up from $277,100 a year earlier. </p> <p> New-home sales fell last month in the Northeast, Midwest and South but rose briskly in the West. </p> <p> Other signs point to choppiness in the housing market. Existing-home sales-which reflect about 90% of the market-fell to a six-month low in November to a seasonally adjusted annual rate of 4.93 million, the National Association of Realtors said this week. </p> <p> News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors. </p> <p> A copy of the full report is available at: http://www.census.gov/construction/nrs. </p> <p> Write to Josh Mitchell at joshua.mitchell@wsj.com and Eric Morath at eric.morath@wsj.com. </p> <pre> </pre> <p> (END) Dow Jones Newswires </p> <p> December 23, 2014 10:00 ET (15:00 GMT) </p> <p> Copyright (c) 2014 Dow Jones & Company, Inc. </p> </FONT>
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